Document Content

DECISION No

DECISION No.37/2000/QD-NHNN1 OF JANUARY 24, 2000 PROMULGATING THE REGULATION ON MANAGEMENT OF AVAILABLE CAPITAL

THE STATE BANK GOVERNOR

Pursuant to the Vietnam State Bank Law No.01/1997/QH10 of December 12, 1997;

Pursuant to the Government�s Decree No.15/CP of March 2, 1993 on the tasks, powers and State management responsibilities of the ministries and ministerial-level agencies;

At the proposal of the Director of the Monetary Policy Department,

DECIDES:

Article 1.- To issue together with this Decision the Regulation on Management of Available Capital.

Article 2.- This Decision takes effect 15 days after its signing.

Article 3.- The director of the Office, the chief inspector and the heads of the units of the State Bank shall have to implement this Decision.

For the State Bank Governor

Deputy Governor
NGUYEN VAN GIAU

REGULATION ON MANAGEMENT OF AVAILABLE CAPITAL

(Issued together with the State Bank Governor�s Decision No.37/2000/QD-NHNN1 of January 24, 2000)

Chapter I

GENERAL PROVISIONS

Article 1.- Management of available capital means the State Bank�s control of changes in the credit institutions� deposits at the State Bank, which, by using instruments of the monetary policy, especially the open- market transactions, exerts its impacts on the payment capability of credit institutions, with a view to achieving the targets of the national monetary policy in each period.

Article 2.-

1. Available capital is the amount of credit institutions� deposits (including compulsory reserve deposits, payment deposits and other types of deposit) at the State Bank.

2. Available capital which needs to be maintained by credit institutions is the amounts of money deposited by such credit institutions at the State Bank to ensure the compulsory reserve and other payment demands along the targets of the national monetary policy in each period.

Chapter II

SPECIFIC PROVISIONS

Article 3.- The management of available capital includes:

1. Organizing the collection and keeping of information related to available capital of credit institutions in each period.

2. Analyzing and forecasting changes in the credit institutions� available capital in each period.

3. Determining the amount of available capital, which needs to be maintained by credit institutions to ensure the achievement of the targets of the national monetary policy in each period and making suggestions on the purchase/sale of short-term valuable papers of the State Bank on the open market.

4. Forecasting the monetary changes in the coming periods and the causes thereof so that the State Bank adopts measures to manage the monetary policy in conformity with the targets of each period.

Article 4.- The credit institutions� available capital shall be forecasted on the basis of determining changes of factors affecting available capital, including:

1. The foreign currency supply and demand on the monetary market and the State Bank�s interference

2. The evolution of the State budget revenue and expenditure

3. The amount of cash issued and withdrawn by the State Bank

4. The borrowing demand and capital mobilization capability of commercial banks, which affect the loans from the State Bank

5. Other factors affecting the monetary demands.

Article 5.- The results of forecast of credit institutions� available capital shall serve as a basis for performance of the open-market transactions and forecast of the capital supply and demand on the monetary market in order to manage the monetary policy.

Article 6.- The State Bank Governor shall stipulate time for forecasting available capital of credit institutions and periodically supply information in service of the forecast in each period on the basis of the practical situation on information collection capability and development level of the monetary market as well as the State Bank�s capability to manage and control the monetary policy instruments.

Article 7.- Information shall be supplied by means of fax, telephones, documents or through computer network.

Article 8.- The organization of the supply, use and preservation of classified information of the State Bank in service of available capital management shall comply with the confidentiality regime of the State Bank.

Chapter III

ORGANIZATION OF IMPLEMENTATION

Article 9.- The Monetary Policy Department shall have the responsibility:

1. To collect data and information on budget revenues and expenditures from the Finance Ministry, data and information from units of the State Bank and information from other sources.

2. To forecast the credit institutions� available capital at the State Bank.

3. To determine the amount of available capital, which needs to be maintained by credit institutions and make suggestions on the performance of open-market transactions according to the forecasting time.

Article 10.- The Accounting- Finance Department shall have to supply data on the revenue, expenditure, capital, fund and results of operations of the State Bank to the Monetary Policy Department according to the time set by the State Bank Governor.

Article 11.- The State Bank�s Transaction Bureau shall have to supply the Monetary Policy Department with the following information according to the time set by the State Bank Governor:

1. The situation on loan-capital withdrawal from and debt repayment to the State Bank by commercial banks, the deposit balance at the State Treasury, the compulsory reserve and deposits of credit institutions at the State Bank�s Transaction Bureau.

2. The situation on the inter-bank foreign currency market, the amount of foreign currency traded by the State Bank on the market.

3. The situation of the market of bidding for treasury bills and bonds through the State Bank.

4. The situation on the purchase and sale of short-term valuable papers of the State Bank.

Article 12.- The Department for Foreign Exchange Management shall have to supply the Monetary Policy Department with plans on foreign currency purchase and sale for the State�s foreign exchange reserve fund according to the stipulations of the State Bank Governor.

Article 13.- The Credit Department shall have to supply the Monetary Policy Department with the following information:

1. Information on capital-borrowing demands of credit institutions, right after receiving the latter�s applications for borrowing.

2. Data on the lending situation and time for recovering the State Bank�s loans from commercial banks (including the loans and debts to be collected at the State Bank�s provincial/municipal branches as well as the central State Bank) to be supplied to the Monetary Policy Department according to the time fixed by the State Bank Governor.

Article 14.- The Department for Issuance-Storage and Fund shall have to supply the Monetary Policy Department with information on the amount of cash issued and withdrawn by State Bank according to the time fixed by the State Bank Governor.

Article 15.- The Department for Banks and Non-Bank Credit Institutions shall have to supply the Monetary Policy Department with information on the credit institutions� compulsory reserve at the State Bank according to the provisions of the Regulation on Compulsory Reserve.

Article 16.- The Department for Banking Informatics Technology shall have to consolidate, upgrade and perfect the internal information network at the State Bank; help the units under the State Bank install programs and transmit information via the computer network so that the Monetary Policy Department may receive information related to the management of available capital and archive all such information.

Chapter IV

FINAL PROVISION

Article 17.- Any amendments and/or supplements to this Regulation shall be decided by the State Bank Governor.

For the State Bank Governor

Deputy Governor
NGUYEN VAN GIAU